Short sea as a sustainable modality for import and export of cut flowers and potted plants
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1 1 Short sea as a sustainable modality for import and export of cut flowers and potted plants Opportunities and requirements Ir Christo van der Meer Operations Manager Fresh Flower Solutions/ Consultant Supply Chain Development FloraHolland
2 Agenda 2 Facts & Figures FloraHolland Global Flower Trade Supply Chain Developments Flower Industry Multimodal solutions in general Challenges Short sea flowers
3 Introduction FloraHolland 3 GROWER owned cooperative: 4,900 national + international members Auction CLOCK and DIRECT sales Largets and best stocked flower sales center (one-stop-shopping 20,000 products) Distribution to 200,000+ points of sale in Europe WALL STREET for world wide flower prices Prof. M. Porter: horticulture in Netherlands is a unique CLUSTER of supply, trade, knowledge, education FloraHollands MISSION To achieve maximum sales returns at the lowest possible total costs of ownership in order to maximize business profitability for all the member growers.
4 Facts and figures 4 Growers : 8,000 nationally and internationally (4,900 members) Customers : Employees : 4,400 Locations : 3,000 exporters and wholesalers 5 in NL + local offices Im/export : Import from 60 countries : Export to 140 countries Surface : 2,700,000 m 2 ( 500 soccer playing fields) Cold stores: 240,000 m 2 Turnover : 4.1 billion (2011) Products : 11 billion cut flowers 1.3 billion potted plants 20,000 different products Daily : 126,000 clock transactions
5 Global Flower Trade 5 Production, consumption and import Import Country NL TO 2011 (mio ) 1.Kenya Ethiopia Israel 72 4.Belgium 39 5.Ecuador 26
6 Export flows from The Netherlands (flowers and plants) 6
7 Relevant Developments for Flower Industry 7 1. Internationalisation Production Consumption 2. Virtualisation 3. Consumer trends Guarantee on product quality 4. Environmental issues 5. European road logistics Accelerating Costs Restrictions Alp Countries Grower Transport Auction Exporter Transport Retail Consumer 6. Forward and backward integration
8 Need to change 8 These developments ask for cost efficient, reliable, high-quality and environmentally friendly logistics solutions! Logistics is a key factor in maintaining and developing our (Dutch) position in the world market We do not compete any longer with products it is our supply chain that competes with the supply chains of our competitors Prof. Martin Christopher
9 9 Developments initiated by FloraHolland Greenbarge (sourcing potted plants NL): Goal is to prove that an efficient and reliable transport connection, by barge, for floricultural products is possible in the supply chain Deep sea transport of flowers (import): Colombia: weekly service Kenya: trial shipments Greenrail (export): To realise a fast, efficient, reliable and environmental friendly rail transport connection for agricultural products
10 Next: short sea flowers 11 Opportunities: Russia (re-import and export) Finland (export) Spain (im- and export) Turkey (im- and export) Main European export markets flowers and plants ( million) 2011 Nearby Market volumes market on distance > Population volumes 800 km center Germany Berlin,.. United Kingdom Avignon, 682 France Perpignan Italy Milaan,.. Zweden Norway Oslo, Malmö Finland Belgium Moscow, 199 Russia 199 St Petersburg Poland Warschau,.. Switzerland Austria Denmark Barcelona, Spain Madrid,.. Oekraine Balearus kazagstan Turkey Istanbul Other Totaal Source: HBAG bloemen en planten 2011
11 Next: short sea flowers 12 Requirements: Lower costs than trucking and acceptable transit times Reliability: frequency and delivery dates Seamless Connections between modalities Perfect Cold Chain Backload: horizontal cooperation Plan-do-check-act for continuous improvement 4th Party Logistics Provider FloraHolland Growers Exporter Exporter Trucking Railterminal Exporter Room temperature Transport Cross-dock Distribution Rail cargo transport Railterminal Stores / Markets Cold store 8 degrees
12 Lessons learned in the Supply Chain 13 Change can only be achieved by COOPERATION between different parties in the supply chain To achieve innovative logistics you need: VISION Sense of urgency Technical innovations You need people and companies with a CAN DO mentality! If you have a good concept and vision! SUSTAINIBILITY and COST REDUCTION can go hand in hand
13 Questions? 14
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